LME benchmark aluminium price further sheds US$20/t owing to US Dollar index rise; SHFE expands 3.7% Y-o-Y

LME aluminium opened at US$2,279 per tonne last Friday, with its high and low at US$2,294.5 per tonne and US$2,251 per tonne, respectively, before closing at US$2,272 per tonne, a drop of US$13 per tonne or 0.57 per cent.

On January 5, the London Metal Exchange price chart registered dampening aluminium prices, with the LME aluminium cash bid price stopping at US$2,215 per tonne and the LME aluminium official settlement price closing at US$2,215.50 per tonne, with a similar plunge of US$20 per tonne or 0.89 per cent.

Brief Overview of the London Metal Exchange Market – Trends January 2024 

If we consider the highest LME aluminium price recorded last year, which was US$2,636 per tonne on January 18, a massive drop of US$420.50 per tonne or 15.95 per cent can be witnessed. Meanwhile, if the lowest price of 2023, which was US$2,068.50 per tonne on August 21, is considered, an augmentation of US$147 per tonne or 7.11 per cent can be calculated. On a Year-on-Year scale, there has been a slump of US$54.50 per tonne or 2.4 per cent from US$2,270 per tonne marked on January 5, last year. 

On Thursday, January 4, the prices of base metals across all categories experienced a decline on the London Metal Exchange (LME). This was attributed to the market's ongoing response to the release of the December meeting minutes of the United States Federal Reserve on January 3. Furthermore, a stronger US dollar index had a negative impact on the entire base metals complex. As of the latest update, the US dollar index stood at 102.40, having reached its highest point since December 14 at 102.73 on Wednesday, indicating a strengthening trend.

The 3-month bid price and the 3-month offer price have both dived down by US$24 per tonne or 1.05 per cent to anchor at US$2,262 per tonne and US$2,263 per tonne, respectively.

The 25 December bid price and the 25 December offer price have shed US$20 per tonne or 0.79 per cent to peg at US$2,510 per tonne and US$2,515 per tonne.

The LME opening stock has negated 3,400 tonnes or 0.6 per cent to a halt at 558,175 tonnes. Live warrants discarded 375 tonnes or 0.1 per cent to poise at 374,275 tonnes, whereas cancelled warrants have descended by 3,025 tonnes or 1.62 per cent to close at 183,900 tonnes.

The 3-month Asian Reference price has dropped US$12.18 per tonne or 0.53 per cent, officially closing at US$2,280.77 per tonne.

SHFE aluminium price 

Today, on January 8, the SHFE aluminium price has crept US$11 per tonne or 0.41 per cent lower to settle at US$2,686 per tonne. If the SHFE aluminium price on December 8, last year, is taken into account, we can clearly see a Year-on-Year escalation of US$96 per tonne or 3.7 per cent. 

At last Friday's night session, the most-traded SHFE 2402 aluminium contract opened at RMB 19,120 per tonne, with its highest and lowest at RMB 19,255 per tonne and RMB 19,080 per tonne before closing at RMB 19,190 per tonne, down RMB 5 per tonne or 0.03 per cent. 

SHFE 2307 aluminium added RMB 595 per tonne or 3.38 per cent to RMB 18,185 per tonne. The open interest fell 11,785 lots to 256,640 lots.